Federal State relations

 Q. Describe the interrelation between tiers of government in Nepal. How can state-province-federal relations be improved?

Answer:

Nepal's federal system, as a "holding together" model of federalism, aims to manage the country's geographical, ethnic, and administrative diversity through three tiers of government—federal, provincial, and local. This model emphasizes unity in diversity and recognizes the need for structured intergovernmental coordination and cooperation to ensure effective governance and public service delivery.

1. Constitutional Basis of Interrelations

The Constitution of Nepal provides the legal foundation for intergovernmental relations. Key articles include:

• Article 50(1): Establishes the federal democratic republican system with three levels of government.

• Article 232(1): Envisions interrelations among federal units based on principles of coexistence, cooperation, and coordination, which are the guiding pillars of Nepal’s federalism.

• Article 51(b)(6): Enshrines the commitment to cooperative federalism, encouraging mutual collaboration among all levels of government.

2. Practical Dimensions of Interrelation

The interrelation manifests in several administrative, legal, and functional areas:

• Cooperative Governance: Federalism in Nepal necessitates joint efforts in planning, budgeting, and policy execution. Shared responsibilities like education, health, and infrastructure demand integrated approaches.

• Administrative Coordination:

  • Article 227 and Schedule 8 (5) involve overlaps and contradictions in the establishment of local services.

  • Article 285 mandates recruitment processes but lacks clarity on personnel transfer between levels, requiring cooperative mechanisms.

• Public Service Delivery:

  • Local governments are the frontline of service delivery but must adhere to federal standards.

  • Chief Administrative Officers, appointed from the federal level, oversee local administrative functioning, exemplifying vertical interdependence.

• Human Resource Management:

  • Employee recruitment, remuneration, and transfers often demand coordination among all three levels.

  • The federal government may assist provinces and local bodies when they lack financial or managerial capacity.

• Legal Harmonization:

  • Federal standards guide provincial legislation, and local laws are to align accordingly.

  • There are ongoing challenges in ensuring consistency and avoiding legal conflicts across tiers.

• Security and Police Management:

  • Division of police powers across levels remains unresolved and sensitive.

  • The Constitution provides for local police under Schedule 8, yet operational control and jurisdiction remain a matter of debate and coordination.

3. Mechanisms to Strengthen Intergovernmental Relations

Several institutions and laws have been established to facilitate better coordination:

• Article 234: Provides for an Inter-Provincial Council chaired by the Prime Minister to resolve disputes and promote cooperation.

• Inter-Governmental Fiscal Arrangement Act, 2074 (2017):

  • Clause 33 establishes the Intergovernmental Fiscal Council to manage fiscal relations, grants, and resource distribution.

• Federation, Province, and Local Level (Coordination and Interrelation) Act, 2077 (2020):

  • Clause 16: Formation of the National Coordination Council.

  • Clause 22: Formation of Thematic Councils under respective line ministries.

  • Clause 24: Provision for Inter-Provincial Coordination Councils.

• Administrative Coordination Council: Established on 2079-11-26, includes Chief Secretaries of all provinces to address administrative challenges collectively.

• Article 251: Establishes the National Natural Resources and Fiscal Commission to recommend equitable distribution of resources and coordinate resource utilization among the three levels.

• Article 220: Mandates the District Assembly for coordination between municipalities and rural municipalities within the district.

4. Recommendations to Improve Intergovernmental Relations

To strengthen state–province–federal relations in Nepal, the following measures are crucial:

• Clarification of Responsibilities: Address overlaps and ambiguities in constitutional schedules through legal and administrative instruments.

• Institutional Strengthening: Ensure timely and regular meetings of councils and commissions mentioned above, with enforceable outcomes.

• Capacity Building: Enhance institutional, technical, and human capacity at the provincial and local levels to enable effective governance.

• Data and Information Sharing: Develop integrated data systems and communication platforms to support evidence-based planning and avoid duplication.

• Financial Devolution: Ensure timely fiscal transfers, capacity for revenue generation, and accountability mechanisms to build local ownership.

• Legal Harmonization: Form a federal structure-wide legal harmonization committee to reconcile legal conflicts and overlaps.

• Conflict Resolution Mechanisms: Operationalize the Inter-Provincial Council and other forums for conflict mediation and policy coordination.

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Conclusion:

Nepal’s federal journey is evolving, with multiple challenges related to clarity of roles, fiscal balance, and institutional coherence. Strengthening the interrelation between the tiers of government requires not just constitutional and legal mechanisms, but also political will, administrative efficiency, and a culture of cooperative governance. Only through such multidimensional efforts can Nepal realize the full potential of federalism in delivering inclusive and effective governance.

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